What happens if a payment is missed on the Buildingstars promissory note?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
rmination, [unless a longer period of time is required or shorter period of time is permitted by applicable state law]. The notice shall state the reason(s) for termination and shall provide that the FRANCHISEE has thirty (30) days from the date of said notice to correct any claimed deficiency. If the deficiency is corrected within thirty (30) days, the notice shall be void. If the deficiency is not corrected within said thirty (30) day period, BUILDINGSTARS may terminate this Agreement after ninety (90) days from the date the original written notice of default was given to FRANCHISEE.
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- 10 Day Opportunity to Cure. BUILDINGSTARS may also terminate this Agreement for nonpayment of sums due to BUILDINGSTARS or BUILDINGSTARS' Affiliates or suppliers; failure of FRANCHISEE to open the Business in accordance with the time periods specified in this Agreement; failure of FRANCHISEE to comply with the Conditions of Grant as set forth in paragraph II.C. If termination is based on the foregoing, the FRANCHISEE shall be entitled to written notice of default, but BUILDINGSTARS shall [if permitted by applicable law] only be required to grant FRANCHISEE ten (10) days to remedy such default. If not cured within the applicable period, BUILDINGSTARS shall have the right to terminate this Franchise Agreement to be effective no less than ninety (90) days after the original notice.
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- Without Opportunity to Cure. Notwithstanding anything contained herein to the contrary, if state law permits, BUILDINGSTARS shall be permitted to terminate the franchise immediately upon notice when the basis or grounds for cancellation is: (a) FRANCHISEE or its owners are convicted of a felony or any other criminal misconduct which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise;
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, if a franchisee fails to make timely payments, Buildingstars has multiple options. Buildingstars can terminate the Franchise Agreement if the franchisee fails to pay sums due to Buildingstars or its affiliates or suppliers. However, Buildingstars must provide written notice of default and give the franchisee ten days to remedy the default, if permitted by applicable law. If the franchisee does not cure the default within that period, Buildingstars can terminate the Franchise Agreement, effective no less than ninety days after the original notice.
Additionally, Buildingstars has the discretion to apply any payments received from the franchisee to any past due indebtedness, including fees, expenses, purchases from Buildingstars or its affiliates, and interest. This means that if a franchisee makes a payment but has outstanding debts, Buildingstars can allocate the payment to those debts rather than the current obligation. Buildingstars is not obligated to accept payments after they are due or extend credit to finance the franchisee's operation.
Furthermore, the franchisee may be responsible for Buildingstars' attorney's fees and other expenses if Buildingstars seeks enforcement of the agreement due to a breach by the franchisee. Buildingstars is entitled to injunctive relief and specific performance enforcing the agreement's provisions if the franchisee breaches the agreement. These remedies are cumulative and in addition to any other rights or remedies available to Buildingstars under the agreement or otherwise.